Asseco publishes very positive financial results for Q1 2020
In Q1 2020, the Group's revenues exceeded PLN 2.9 billion. Operating profit amounted to PLN 250 million, i.e. by 11% more than in the corresponding period in the previous year. Net profit increased by 3% to PLN 82 million. The Group developed intensively on foreign markets, where it generated 90% of its sales. The core business of Asseco continues to be the sale of proprietary IT products and services, which reached nearly PLN 2.4 billion or 81% of the Group's total revenues in the last quarter.
For the assessment of the financial and business situation of Asseco, the key information is the basic data published on a non-IFRS basis. These figures supplement the data reported in accordance with the IFRS* standard. In the first quarter of this year, non-IFRS operating profit increased by 13% to PLN 316 million, while non-IFRS net profit went up by 6% to PLN 95 million.
The first three months of 2020 were successful for the Group, even though the second half of March brought difficult conditions related to the coronavirus pandemic. The fact that we recorded an increase in revenues in all segments of our operations is, among other things, the consequence of good diversification of our business, which we have been consistently developing for years on a geographical, sector and product level. A rapid response to the situation related to COVID-19 allowed us to ensure the continuity of operations as well as the implementation of maintenance contracts and new projects contracted. It is difficult to predict the final impact of COVID-19 on our business in the coming quarters. On the one hand, we see an economic slowdown in some countries and sectors, but on the other hand, the importance of digitization is growing in all areas in which the Group operates. The examples include IT tools enabling remote operation and customer service, as well as cloud and cyber security solutions. Looking at our backlog for 2020, which at the level of revenues amounts to PLN 8.6 billion and is by 20% higher than the order book presented in May 2019, I hope we will cope well with this unprecedented time, said Rafał Kozłowski, Vice President of the Management Board of Asseco Poland.
The Asseco Group's revenues are diversified by sectors and in Q1 2020 they were distributed among the following segments: general business (40%), banking and finance (36%), and public institutions (24%). Asseco is also geographically diversified and presents its results by three segments. The Formula Systems segment generated 64% of consolidated revenues, while Asseco International - 26% and Asseco Poland - 10%.
The General Meeting of Shareholders of Asseco Poland, held on May 27, 2020, passed a resolution to pay out a dividend of PLN 250 million or PLN 3.01 per share. This means a dividend yield of 4.3% (as at May 28, 2020).
We have been sharing profits with our shareholders for years. Since 2007, we have paid out PLN 2.2 billion in dividends, and taking into account the payment from the 2019 profit, which will be made on June 17, 2020, that amount will exceed PLN 2.4 billion, commented Rafał Kozłowski.
*The non-IFRS figures include the adjustments for: the cost of amortization of intangible assets recognized under the combination settlement (PPA), the costs of share-based payment transactions with employees (SBP), the costs and financial revenues resulting from the transactions of purchase and sales of companies (M&A) and tax effects associated with them.